Amended and updated notes on section 225 of Companies Act 2013. Detail discussion on provisions and rules related to expenses of investigation.
Chapter XIV (Sections 206–229) of the Companies Act, 2013 (CA 2013) deals with the provisions related to Inspection, Inquiry and Investigation. Section 225 of CA 2013 provides for expenses of investigation.
Recently, we have discussed in detail section 224 (Actions to be taken in pursuance of inspector’s report) of CA 2013. Today, we learn the provisions of section 225 of Companies Act 2013.
The provisions of section 225 are effective from 1-April-2014. You may refer Notification No. S.O. 902(E) issued dated 27-03-2014. In this article, you will learn detail of the provisions of section 225 of the Companies Act 2013.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | XIV |
| Chapter Name | Inspection, Inquiry and Investigation |
| Section No. | 225 |
| Section Name | Expenses of investigation |
| Monthly Updated Edition | Company Law PDF |
Section 225 of Companies Act 2013: Expenses of investigation
Section 225 shall come into force on 1st April, 2014 vide Notification No. S.O. 902(E) issued dated 27.03.2014
(1) The expenses of, and incidental to, an investigation by an inspector appointed by the Central Government under this Chapter other than expenses of inspection under section 214 shall be defrayed in the first instance by the Central Government, but shall be reimbursed by the following persons to the extent mentioned below, namely: —
- (a) any person who is convicted on a prosecution instituted, or who is ordered to pay damages or restore any property in proceedings brought, under section 224, to the extent that he may in the same proceedings be ordered to pay the said expenses as may be specified by the court convicting such person, or ordering him to pay such damages or restore such property, as the case may be;
- (b) any company or body corporate in whose name proceedings are brought as aforesaid, to the extent of the amount or value of any sums or property recovered by it as a result of such proceedings;
- (c) unless, as a result of the investigation, a prosecution is instituted under section 224, —
- (i) any company, body corporate, managing director or manager dealt with by the report of the inspector; and
- (ii) the applicants for the investigation, where the inspector was appointed under section 213,
to such extent as the Central Government may direct.
(2) Any amount for which a company or body corporate is liable under clause (b) of sub-section (1) shall be a first charge on the sums or property mentioned in that clause.